Buy Nvidia: A Deployment Of Capital Would Be A Catalyst For A Rally
We fully believe in NVIDIA's potential, and think that now is a good time to add to or initiate a position in this company. Too many people believe that NVIDIA is trapped in the past, when in reality the company is moving aggressively to secure a place in the future of computing. Tegra 3 is giving the company a prominent place in the smartphone and tablet markets, and we believe that the markets are underestimating NVIDIA. And a deployment of capital, a step that we believe NVIDIA should take, would be a catalyst that would likely spark a rally in the stock.
The Zacks Analyst Blog Highlights: NVIDIA, Intel, Advanced Micro Devices, Texas Instruments and Marvell
For Immediate Release
Chicago, IL – June 21, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include NVIDIA Corp. (NVDA - Analyst Report), Intel (INTC - Analyst Report), Advanced Micro Devices (AMD - Analyst Report), Texas Instruments (TXN - Analyst Report) and Marvell (MRVL - Snapshot Report).
Here are highlights from Wednesday’s Analyst Blog:
ISRO Selects NVIDIA Technology
With innovation comes a new opportunity and the same has been witnessed in the case of NVIDIA Corp. (NVDA - Analyst Report). Recently, NVDIA has been selected by the “Indian Space Research Organization” (ISRO). SAGA system, India's most powerful supercomputer, which holds the 86th position on the Top 500 list, will be supported by the NVIDIA GPU to enhance the capabilities of satellite launch vehicles.
This supercomputer leverages the power of 640 NVIDIA Tesla GPUs, which provides up to 394 teraflops of peak performance. Moreover, this newly developed supercomputer enables ISRO to accelerate and improve the design and analysis of new and existing satellite launch vehicles, which enable more complex and accurate design simulations.
We believe that this may open up new possibilities for NVIDIA across the globe. This new technology deployed by ISRO helps reduce the time to create, simulate and verify a new launch vehicle, which is now restricted to days compared to weeks earlier. Moreover, this has resulted in an improvement in the overall quality while enhancing the durability at the same time.
Although the company’s entry into space research is a prudent move, almost 80% of its revenue is derived from the PC market. From that, almost 50% of the revenue comes from the high-end PC and gaming segments. This is an area where the company’s business is dependent on consumer spending and economic growth. Although space research diversifies the company’s core business considerably, we believe that this does not cover up for the macroeconomic risks associated with its core business.